Be the first to like this
Hedge fund managers continue to witness extremely difficult market conditions combined with increased investor activity and litigation. Hedge funds increasingly face scrutiny from fund of hedge funds, institutional investors and distributors as the due diligence process becomes more erroneous, detailed and time consuming year on year. Existing investors are re-evaluating their investments with risk mitigation being their main focus. Investors are placing ever-increasing demands for information and transparency.
The corporate governance framework of a hedge fund must be able to withstand this rigorous scrutiny. Hedge fund managers that demonstrate the highest standards of corporate governance are more likely to retain their existing investor base and to attract new investors. Fundamentally, this enhances a managers ability to sustain and increase assets under management.